Which One of the Following Statements Is NOT True

question 56

Multiple Choice

Which one of the following statements is NOT true?

• A) Firms using matching maturity strategy fund all working capital needs with long-term borrowing.
• B) Long-term financing strategy relies on long-term debt to finance both capital assets and working capital.
• C) All working capital and a portion of fixed assets are funded with short-term debt when firms use the aggressive funding strategy.
• D) Firms using a matching maturity strategy fund all working capital needs with short-term borrowing.

---

Definitions:

Negative Punishment

The removal of a desirable stimulus following a behavior, intended to decrease the likelihood of that behavior occurring again.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, influencing the probability of behavior being repeated.

Classical Conditioning

A method of learning that happens when an environmental trigger is associated with a naturally existing stimulus, yielding a trained reaction.

Social Conditioning

The process by which individuals learn the norms, values, and behaviors acceptable to their society through social interactions.